Economic Development in New Zealand

Topics: Human Development Index, Life expectancy, Economic growth Pages: 5 (464 words) Published: January 18, 2014

Economic development in New
Zealand
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HDI

Life
expectancy

GDP per
capita PPP

Literacy rate

Mean years
of schooling

2010

0.907

80.40 years

$25,293

99%

12.4 years

2013

0.919

80.82 years

$25,689

99%

12.5 years

!
The Human Development Index (HDI) is a composite statistic of life expectancy, education, and income indices used to rank countries into four tiers of human development. From the year 2010 to 2013, New Zealand's HDI has gone up by 0.012. This tells us that over the period of 3 years, the life expectancy, education and GDP per capita PPP of New Zealand has increased, thus proving an increase in economic development.


0.92

0.913

0.905

0.898

0.89

2010

2011

ECONOMIC DEVELOPMENT IN NEW ZEALAND

2012

2013

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Life expectancy has also increased by 0.42 years. This shows that people living in New

Zealand in 2013 had a longer predicted lifespan as compared than those in 2010. For this to occur, people living in New Zealand must have had more access to healthcare or an increase in GDP per capita to purchase better healthcare and according to sites like www.cia.gov and www.tradingeconomics.com, there was an increase in GDP per capita.


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The increase in GDP per capita proves that there is an increase in economic

development as economic development is directly proportional to GDP per capita. During the three years, there has been an increase in immigrants coming into New Zealand due to studies, job opportunities and retirement. The increase in immigrants caused any increase in consumer demand for goods and services which then proved the need to increase supply. Companies then brought up wages and hired more workers so as to increase productivity so as to meet consumer demands. This caused an increase in wages and employment rate as reflected on sites like www.cia.gov, www.hrd.undp.org and www.stats.govt.nz thus reflecting an increase in economic development.




Another way in which increased immigration affected economic development was

through taxes. As more immigrants resided in New Zealand due to jobs and many others, more taxes were collected by the government as there were more people to collect taxes from, thus resulting in the government having more budget. The increase in government budget could then be used to induce economic growth via demand and supply side policies, resulting in economic development.


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Another contributing factor to the increase in economic development was the increase

in average years of schooling per person. With more education received per person, this increases the chance of a job opportunity or an increase in wages, thus consumer spending is increased, leading to the multiplier effect, therefore contributing to the increase in economic development and growth.




ECONOMIC DEVELOPMENT IN NEW ZEALAND

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References: 

www.cia.gov

www.hdr.undp.org

www.stats.govt.nz

www.tradingeconomics.com

www.wikipedia.com

www.treasury.govt.nz

www.rbnz.govt.nz

www.globalpropertyguide.com

www.heritage.org


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